13 Models of Consumer

Consumer Behavior MBA MM 3201

Models of Consumer behavior

Models of Consumer behavior are:

1. Economic model2. Psychological model3. Pavlovian model4. Input, Process, Output model- Gandhi, Kotler5. Sociological model6. Howrath Sheth model7. Engel-Blackwell-Kollat model8. Model of family decision making9. Nicosia model10. A model of Industrial buying behavior


1. Economic model:

• As per this model consumers follow the principle of maximum utility based on the law of diminishing marginal utility.

• Consumers want to spend the minimum amount to maximize the gains.

• Economic model is based on:

Price effect Substitution effect Income effect


• Model is not a complete one as it assumes the homogeneity of market, similarity of buyer behavior and focuses only on the product or prices.

• It ignores the individual determinants and Environmental influences on the consumer behavior.

2. Psychological model:

• Psychologists have been investigating the causes that lead to purchases and decision making.

• We are all aware of Maslow’s hierarchy of needs and McGuire’s psychological motives.


3. Pavlovian model:

• It is based on the learning process that consists of the following factors:

Drive: It refers to strong internal stimuli that impels action.

Drives can be innate or acquired. Innate stem from psychological needs like hunger, thirst, pain etc. Acquired needs refer to striving for status or social approval.

Reinforcement: When a person has a need to buy and passes by a store, gets attracted and buys a product. If it leads to satisfaction, reinforcement takes place leading to repeat purchase.


4. Input, Process and Output model:

• It is a simple model where input for the consumer is the firm’s marketing effort and social environment.

• The elements of the process of decision making consist of need recognition, Product awareness, Evaluation and intention.

• The output comprises of Purchase and Post purchase behavior. If the purchase and use of product is a satisfying experience, it leads to repeat purchase otherwise discontinuation.


Input, Process and Output model

Firm’sMarketingEffort

SocialEnvironment

P e r s o n a l I t y

A t t i t u d e s

Motivatio

n

Perceptio

n

NeedRecognition

ProductAwareness

Interest Breakdown

EvaluationInterest

Intention Purchase

Post-purchaseBehavior

Repeatpurchase

Discontinuation


5. Sociological model:

• As per this model, consumer being member of many groups in the society, his buying behavior is influenced by these groups.

6. Howrath Sheth model:

• The model depicts consumer behavior as a complex process and involves concepts of perception, learning and attitudes. It is applicable to individuals.


• The model has four sets of variables:

Input Perceptual and Learning constructs Outputs Extrogenous or output variables

• Inputs are provided by three types of stimuli: Significative, Symbolic and Social stimuli.

• The perceptual and learning constructs are psychological variables like motives, attitudes and perception.


• The consumer receives the stimuli and interprets the same. Two factors influence the interpretation: stimulus ambiguity and perceptual bias.

• Output refers to the purchase decision. Purchase satisfaction increases brand comprehension while dissatisfaction leads to negative attitude.

• External variables, not shown in the model, include social class, importance of purchase and financial status.


Simplified Howrath Sheth model


7. Engel-Blackwell-Kollat model:

• The model is a fore-runner of the consumer decision process model discussed earlier.

• It consists of four components:

Information processing Central control unit Decision process Environmental influences


Engel-Blackwell-Kollat model


7. Model of family decision making:

• In the context of family decision making process, understanding the interaction by family members with each other is important.

• There are different consumption related roles played by family members.

• The model depicts the predisposition of family members which when influenced by other factors like social class, FLC and personality etc. leads to joint or individual decisions.


Model of family decision making


7. Nicosia Model:

• This model explains consumer behavior on the basis of four fields. Output from one field becomes input to the next field.

• Field one consists of two subfields i.e. firm’s & product attributes and predisposition of the consumer & his own attributes.

• Field two is pre-action field where the consumer goes on for search & evaluation and gets motivated to buy the product.


• Field three is the act of purchase or decision making to buy the product.

• Field four highlights the post purchase behavior i.e. use of the product, its storage and consumption.

• The feedback from field four is input to the field one and the feedback is responsible for changing the pre-disposition of the consumer and later his attitude towards the product.


Nicosia model


Model of Industrial buyer behavior


Recap:

1. Economic model2. Psychological model3. Pavlovian model4. Input, Process, Output model- Gandhi, Kotler5. Sociological model6. Howrath Sheth model7. Engel-Blackwell-Kollat model8. Model of family decision making9. Nicosia model10. A model of Industrial buying behavior


13 Models of Consumer

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